Des Plaines’ purchase of historic bank building could be catalyst for downtown revitalization

History as an economic catalyst? Bank on it.

It takes moxie to step outside of one’s comfort zone and reimagine yourself. But that is exactly what the Des Plaines City Council is doing.

Its decision Monday night to purchase the former Des Plaines State Bank building at 678 Lee St. and an adjacent parking area for $1.89 million represents a risk.

But you have to respect the effort — provided it works out as planned.

Fourth Ward Alderman Dick Sayad was the lone dissenting voice, warning that the price was too high for a building that has been on the market for four years.

“I don’t think it’s the right deal for the city right now,” he said.

Alderman Sean Oskerka argued there was no better time to “keep a big piece of our history in town.”

Second Ward Alderman Colt Moylan assured Sayad that the city has an endgame — a yet-undisclosed user waiting in the wings. The deal could consummate as early as mid-December.

“We have an opportunity to secure this building and keep it preserved in the downtown area and keep its historical nature,” Moylan said. “I’m excited tonight to be actually voting on buying this building. It has been a long time coming, it’s been a lot of hard work and a lot of interesting debates amongst this council. … I think this is something that will bring a lot of people downtown.”

Fifth Ward Alderman Carla Brookman predicted the purchase will become a catalyst for downtown revitalization.

“It reflects the historical character of Des Plaines. It is both unique and iconic, and it holds the promise to be an integral part of our downtown revitalization,” she said. “This site will become a destination in our downtown area. Period. Private enterprise that will generate significant sales tax revenue and lease revenue that will generate a positive return for the city and its taxpayers.”

According to Brian Wolf, local historian and Des Plaines History Center trustee, the site was settled by pioneer Simeon Lee, the namesake of Lee Street. At one time or another it housed Des Plaines' first post office, Des Plaines Lumber and Coal, the library and several different banks.

The roughly 18,000-square-foot building, built in 1927, boasts a marble facade, large windows, terrazzo floor, coffered plaster ceiling, a mezzanine and other architectural highlights — many of which likely are hidden beneath the series of “renovations” that have occurred there over the years. But the bones remain.

“With this purchase tonight, the city will take control of a very essential piece of downtown architecture,” Brookman said. “This is a beautiful building that has been allowed to fall in disrepair through neglect and deferred maintenance.”

Jeff Rogers, the city’s director of community & economic development, conceded it could cost millions to rehabilitate the bank building and the Leela/Masonic Temple building the city bought in 2023. But shy of surrendering downtown development to the whims of developers and the market, what real choice does it have?

“I think this is a smart move, and we need to stick to our plan to help revitalize the downtown by stepping in as a government to help move along the revitalization,” Sixth Ward Alderman Mark Walsten said. “If we stay on this path, I think we will do a good job in turning around the city.”

Des Plaines officials are negotiating a deal with managing partner of Foxtail on the Lake restaurant David Villegas for future operations at 678 Lee St. City spokesman Brad Goodman said it is yet undetermined whether any deal will be in the form of a lease, lease-to-own or outright sale.

The city hosted a downtown strategic plan with its consultant on Wednesday, Nov. 20, at city hall. A recording is available on the city’s website at desplainesil.gov. Goodman said a draft plan likely will be ready sometime in January, and there will be opportunities for the public to comment after that.

Rogers said the new plan represents a 10-year update to the 2019 Des Plaines comprehensive plan. This current plan identified a need for expanded retail and dining options downtown — characterized as within a 10-minute drive from the intersection of Miner and Lee streets.

True Value and DPHC

Having a very real connection with hardware, news that True Value had filed for bankruptcy seemed to suck the wind out of my sails. After all, the Des Plaines History Center owns and operates the 1907 Kinder House on Prairie and Pearson streets.

Benjamin Kinder established the store about a block north in the 1870s and it remained until 2003 when it closed. For many years, Benjamin, his wife, Elizabeth, and their three boys lived in an apartment over the store — at what is now Village Bank & Trust.

In mid-October, True Value Co. filed for Chapter 11 bankruptcy protection and then announced it had entered into an agreement to sell all of its business operations to Do it Best Corp. of Fort Wayne, Indiana.

“After a thorough evaluation of strategic alternatives, we determined that the sale of our business was the path forward to maximize value and best serve our retail partners and other stakeholders into the future,” True Value’s Chief Executive Officer Chris Kempa said in a statement.

“We believe that entering the process with an agreed offer from Do it Best, who has a similar decades-long history in the home improvement space … is the most beneficial next step for True Value and our associates, customers, and vendor partners.”

The company is targeting completion of the sale by year’s end. True Value stores are independently owned and are not a part of the Chapter 11 proceedings, except for one company-owned store in Palatine. However, Pesche’s Flowers and Garden Center is affiliated with True Value through its home and garden showplace division (independent garden centers). Owner Chris Pesche is confident of a smooth transition.

In 1948, John Cotter founded Cotter & Company, a retailer-owned company that included 25 independently owned and operated stores. With the purchase of Hibbard, Spencer and Bartlett in 1963, Cotter also acquired the True Value trademark, around since 1932. According to the company’s website, it serves some 4,500 stores worldwide.

Holiday house tour

Dave Harms and Lynne Eltrevoog, historical society and Golden Glow of Christmas Past members from Marengo, are collaborating with the Des Plaines History Center to create “A Kinder Christmas” on Saturday, Dec. 14. The signature 1907 house will be decked out with rare, period holiday items. Special guided tours and refreshments will be provided. To register for this new event or find out about other History Center activities, visit DesPlainesHistory.org.

• Kurt Begalka is executive director of the Des Plaines History Center. He may be reached at kbegalka@desplaineshistory.org.